Low Interest Rate Card Offer Comparison

Low interest rate cards offer you a competitively rate that is lower than the standard interest rate either indefinitely or for a fixed period of time. If you find that you don’t pay off your balance in full every month, then a card featuring a lower rate for a prolonged period of time will suit you well because it reduces the interest payable on your monthly purchases. However, if you have a large balance it may be cheaper to transfer your balance to another card that offers zero interest, which means you can pay back your debt faster.

Your Guide to Credit Cards With Low Interest Rates

When you are looking for a new credit card and comparing all the different deals available, one of the most important features is the interest rate. In today’s highly competitive market you can find plenty of credit cards with low interest rates offering great value for money. This particular type of card is a very popular choice for people who use their card regularly for everyday purchases and usually have an ongoing unpaid balance on their credit card statements.

The interest rate applied to your account is the amount you pay to the bank for borrowing credit. When you use your card for purchases you are given a due date to repay the amount on your monthly statement, either paying the balance in full or carrying part of the balance over to the next month’s statement (you must pay at least the minimum payment requirement).

Any amount remaining unpaid on your balance after the due date starts attracting interest at the agreed rate for your credit card. For this reason, if you are the type of customer who often has an ongoing balance on your account, a low interest rate credit card could be a sensible choice. Interest continues to grow on an ongoing balance, so the lower the interest rate the less money your spend repaying the debt in the long run.

The low interest rate on this type of credit card usually applies to the purchase rate – this is the part of your balance that represents all the purchases you have made including retail payments, direct debit payments and online purchases. Other transactions usually attract different interest rates, including cash advances, money transfers and other features such as balance transfers. When you are using a low interest rate credit card make sure you know exactly what transactions the low rate applies to.

Different low rate cards offer different types of deal, including a permanent low interest rate for the entire life of the card or a low rate for an introductory period. Deals with an introductory promotion often feature a low, or even 0%, purchase rate for a fixed period, typically six to 12 months, after which the rate reverts to a higher level. Some low interest credit cards also offer a reduced or no annual fee for the first year, with a higher annual fee thereafter. It is important to examine how different deals change over time to make sure you really save money in the long run.

Credit cards with a low interest rate tend to be no-frills in nature, with fewer features than their more prestigious alternatives. There are, however, certain gold and platinum cards available that feature low rates. These are designed for customers with higher incomes and good credit ratings, and generally offer travel and purchase insurance covers along with a low purchase rate. Some low interest credit cards also feature rewards programs with the opportunity to earn and redeem points on purchases.

When comparing low rate credit cards the most important feature to consider is the interest rate, but you should also look at the other features, charges and fees to see which card genuinely saves you the most money. These card offers may not suitable for everyone; but if you use your card for frequent purchases, make repayments on time but not always in full, have a decent credit rating and a stable income, one of these cards could be the ideal choice for you.

Two Tips for Using Low Interest Rate Credit Cards

Always pay more than the minimum required payment: If you have chosen a low rate credit card, you are probably the type of cardholder who doesn’t pay your monthly statement in full and have an ongoing balance on your credit card account. A low interest credit card is a good way of managing this ongoing debt – you should always pay more than the minimum required payment each month and reduce the amount you owe, paying less on interest and more on clearing the balance.

Make use of introductory offers: There are plenty of attractive and beneficial introductory offers available including low or 0% purchase and balance transfer rates for a promotional period. If you have an ongoing credit card debt that you are struggling to repay, it could be worthwhile making a balance transfer and taking advantage of the low rates during the introductory period.

Typical Low Interest Rate Credit Card Features

Low interest rate: This is probably your main concern – find the deal that offers the best rates on your purchases, especially if you are unable to pay your balance in full at the end of the month.

Annual fee: Many low rate credit cards feature an annual fee. When comparing cards try to find one that offers a low annual fee along with a low interest rate. The annual fee should not be so big that it negates savings you make on the interest rate.

Introductory offers: The banks often offer new customers very attractive introductory offers including low or 0% purchase and balance transfer rates and reduced annual fees for a fixed promotional period. If you shop around and compare these offers you could find a beneficial deal and save some money. Make sure you know what rates and fees apply once the promotion ends.

Rewards programs and other extras: Some credit cards with low interest rates allow access to rewards programs and other benefits such as travel insurance and purchase protection. When comparing cards look out for deals that offer rewards and perks that fit in with your spending habits and lifestyle.

Other fees and charges: Different fees and charges may apply to different types of transactions, so always examine the terms and conditions before applying. The interest rate often applies to purchases. Cash advances, ATM withdrawals, using your card abroad, transferring funds to other accounts and other transactions may attract significantly higher interest rates.